According to him, the agreement had been signed and sealed for the next five years and allayed fears of any possible changes under the new government that would take office in January 2017.

Mr Jackson gave the assurance when he answered questions from the media after he had addressed the annual general meeting of the American Chamber of Commerce (ACHAM), Ghana in Accra yesterday.

The agreement, the Ghana Power Compact, also known as Compact II, under which the government is receiving about $500 million, will directly support the energy sector’s strategic objectives to achieve power supply sufficiency, including exports to neighbouring countries, and also supply power for new oil and gas-based industries.

The programme objectives under Compact II will focus on developing projects and initiatives that will address constraints to the supply of adequate and reliable power. They will also seek to address the attendant socio-economic and gender issues that are related to electric power.

The treaty

The treaty was signed in August 2014 between Ghana and the US, represented by the Millennium Challenge Corporation (MCC).

The fund will help improve the performance of Ghana’s power sector, unlock the country’s economic potential, create jobs and reduce poverty.

Six projects are scheduled to be implemented under the Power Compact - Electricity Company of Ghana (ECG) Financial and Operational Turnaround Project, NEDCo Financial and Operational Turnaround Project, Regulatory Strengthening and Capacity Building Project, Access Project, Power Generation Sector Improvement Project and Energy Efficiency and Demand side Management Project.

The six projects have been carefully designed to address the root causes of the unavailable and unreliable power supply in the country which is inextricably linked to the economic development of Ghana and poverty reduction.

ECG staff

Mr Jackson also used the occasion to reassure workers of the ECG that the deal would not cause any retrenchment in the company.

“Unless any worker wants to leave voluntarily, none will be forced out and so they should be rest assured,” he said.

His assurance about possible layoffs followed agitation by the ECG Workers Union to the effect that the treaty will lead to significant layoffs, a move which will impact negatively on their living conditions.

On the selection of the company to act as the concessionaire under the treaty, Mr Jackson expressed optimism that the Millennium Development Authority (MiDA), the entity formed to implement the compact, would do so after the December general election.

He said the process would be fair and open to ensure that the best company emerged to deliver as expected.

“Let us also be reminded that the company to win will have clear performance benchmarks. If they fail to live up to expectation, the government deserves the right to abrogate that contract,” he said.